French media giant Canal+ has submitted a formal bid to acquire South African pay-TV leader MultiChoice for approximately R31.7 billion (USD1.6 Billion). The non-binding indicative offer, announced on Thursday, is subject to regulatory approvals.

Key details of the offer:

  • Price: R105 per ordinary share, representing a 40% premium over MultiChoice’s closing share price on January 31, 2024.
  • Motivation: Canal+ believes a merger would create a global-scale media company, addressing concerns about MultiChoice’s future competitiveness.
  • Conditions: The offer depends on regulatory approvals and adherence to South African media and stock exchange regulations.
  • Canal+’s position: They emphasize their commitment to South African laws, Black Economic Empowerment initiatives, and supporting local sports and creative industries.

Canal+ already owns 30% of MultiChoice, acquired through a gradual “creeping takeover” strategy. Concerns had been raised about possible violations of South Africa’s foreign ownership regulations, but MultiChoice clarified these concerns.

Canal+ aims to transform MultiChoice into a global media powerhouse, citing concerns about its current size hindering its potential. The combined entity promises increased scale, access to talent and resources, and enhanced competitiveness in the global streaming market. Canal+ assures commitment to South Africa’s creative industry, local sports, and Black Economic Empowerment initiatives.

The coming months will be crucial in determining the fate of this proposed acquisition. Key factors to watch include regulatory decisions, shareholder responses, and any further developments from both companies. This bold move by Canal+ raises questions about the future of media ownership in Africa and its potential impact on local content and talent.

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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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